FMN recorded 27.3 % decline in profit in three months

Flour Mills of Nigeria Plc has recorded a 27.37 per cent decline in its profit after tax in three months to 31st December, 2018.

The firm, in a statement made available to the Nigerian Stock Exchange on Thursday, said its profit after tax dropped to N2.83bn from the N3.89bn recorded in the same period in 2017.

The firm’s gross profit also declined by 18 per cent to N3bn from the N41bn recorded in the corresponding period of 2017.

In the nine-month period ended 31st December, 2018, a decline of six per cent was recorded in the group’s revenue, which dropped from N428bn in 2017 to N401bn in 2018.

The statement said the continued strong sales and brand building focus ensured a further growth in the firm’s market share and strengthened the group’s market leader position within the flour market.

Finance cost reduced by N16.5bn, compared to the N25.2bn of the same period in the previous year.

Flour Mills said the reduction in finance cost was due to the settlement of overdraft facilities and replacement of high-interest yielding loans with more favourable loans.

The notes to the financial statements showed that the company had outstanding loans totalling N127bn.

The group also announced its intent to carve out its fertiliser business from Flour Mills of Nigeria Plc and register it as an independent company to hold its agro-allied business.

The statement read in part, “This is expected to position this business segment for further growth and ensure optimal financial structures for the related businesses.

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